Victoria has introduced dedicated regulations for managing psychological health under the Occupational Health and Safety Amendment (Psychological Health) Regulations 2025. These laws commenced on December 1 and supplement the existing OHS Act and impose clearer, more prescriptive duties on employers.
What Are Psychosocial Hazards?
Psychosocial hazards are factors in the design, management or environment of work, or in interactions at work, that may harm a worker’s psychological health.
Common examples include:
- Bullying and sexual harassment
- Occupational violence and aggression
- High or low job demands
- Low job control or unclear roles
- Poor supervision or workplace relationships
- Inadequate organisational change management
- Exposure to traumatic events or content
- Remote or isolated work
- Poor environmental conditions, or low recognition and reward
Victorian employers already have a duty under the OHS Act to manage these hazards “so far as reasonably practicable”. The new regulations now tell employers how to meet those duties.
What Has Changed for Employers?
Employers face specific, enforceable obligations around psychosocial risk management, including:
1. Identifying psychosocial hazards
Employers must proactively assess their workplaces for potential psychosocial risks, not just respond reactively.
2. Implementing control measures
Employers now need to eliminate or reduce psychosocial risks and regularly review control measures.
3. Written prevention plans
Written plans will now be required for key hazards such as:
- bullying
- sexual harassment
- occupational violence and aggression
- exposure to traumatic material
- high job demands
4. Recording and monitoring incidents
Although the originally proposed mandatory periodic reporting may be scaled back, employers now need mechanisms to capture and monitor:
- bullying complaints
- sexual harassment reports
- violent or aggressive incidents
Victoria has become the last jurisdiction to introduce psychosocial regulations, but its model is more detailed and more prescriptive than those in other states.
Legal Risks of Non-Compliance
The new regulations give WorkSafe Victoria stronger benchmarks to compare employers and identify high-risk workplaces.
Penalties for breaches are significant. Recent cases demonstrate the seriousness of psychosocial risks:
- In 2023, an employer was fined $380,000 after a court found that an unmanaged toxic workplace culture contributed to an employee’s suicide.
- WorkSafe Victoria has since pursued multiple prosecutions for failures to control psychosocial risks such as high workloads, exposure to traumatic material and inappropriate workplace behaviour.
Expect more frequent and more severe enforcement once the new regulations commence.
What Employers Should Do Now
Employers should take a proactive, risk-based approach and prepare for the changes. Key steps include:
1. Review current practices
Assess whether existing systems identify and manage:
- isolated work
- high-stress roles
- trainees/apprentices
- organisational change
- performance/disciplinary processes
2. Conduct psychosocial risk assessments
Use surveys, consultation, incident data, turnover and exit trends to identify hotspots within the workplace.
3. Update policies and procedures
Ensure OHS and HR policies:
- reflect psychosocial hazards
- outline clear reporting pathways
- include a psychosocial risk management framework
- align with the upcoming Compliance Code
4. Strengthen reporting and data-capture systems
Implement or improve systems that record:
- bullying complaints
- sexual harassment reports
- aggression/violence incidents
- controls and follow-up actions
5. Train leaders and staff
Provide targeted training for managers and HR on new obligations, and awareness training for all employees.
6. Start planning
Schedule a comprehensive review of systems, policies, and training in-line with regulations and the Compliance Code.
Conclusion:
Victoria’s psychosocial regulations represent a major shift towards stronger, clearer and more enforceable obligations regarding psychological health at work. While psychosocial harm can never be completely eliminated, employers that prepare now will:
- reduce legal, safety and reputational risks
- improve workplace culture and retention
- ensure compliance once the regulations commence
Proactive planning will put employers in the best position for a smooth transition to the new regulatory framework.